Home Based Business Support The FM fragrance group

mlm and taxes

mlm and taxes
____________________________________________________________________
Subscribe to my Newsletter so see how I support my team to go to the top ==>>
____________________________________________________________________

MLM Tax Breaks And Advantages Of Working From Home

You Should Know About Irs Regulations As They Relate To Mlm’S

If you’re running your own business out of your home which includes MLM companies, Network Marketing companies, Direct Sales companies or any type of employment where you are deemed “self” employed, then it is your duty to be current on IRS rules and codes that apply to the self employed.

This pertains to you regardless of the product or service you are selling with the following companies – just to name a few:

• ACN
• Fuel Freedom (FFI)
• Mary Kay
• Prepaid Legal
• Arbonne
• Juice Plus
• Melaleuca
• Usana
• Coffee Acai Plus
• Mannatech
• Mona View
• Vemma Healthy

The following is a brief summary of what you should know regarding the IRS and how it views the Network Marketing industry. This is so important because the tax rules and codes were written for the specific purpose of those individuals venturing into the new business realm of direct sales. The last thing the direct selling industry needs is a reputation with the IRS and other government agencies that individuals are posing as business owners for all the wrong reasons.

You and I both know that in today’s economy, not only is it paramount that we create a substantial income, but more importantly, how do we hold on to as much of our earnings as possible.

Well the IRS knows how much is involved in starting up a business. Don’t be fooled for one second thinking that just because your office is in your home that starting a new business is any different that those starting up a business that includes a monthly rental bill. The logistics and requirements are much the same no matter where your office is.

• Network Marketing has been recognized as an important industry by the IRS.
• In 1982, the IRS specifically recognized the independent contractor status of direct sellers.
• The IRS issues a number of materials addressing the issues of self-employment workers and home-based businesses.
• The IRS specifically addresses the issues of network marketers in IRS Publications 911. See Tax Guide for MLM/Direct Selling Distributors
• One in ten thousand households in America has a direct seller.
• There are approximately ten million network marketers in the United States
• Sales of the Network Marketing industry in the United States are in the $20 billion range.
• About 65 percent of direct sellers area female and 35 percent are male.
• For most, Network Marketing is a part-time activity. Approximately 80 percent of networkers work part-time, less than 30 hours a week earning less than $500 per month.
• Network Marketing opens doors for everyone. About 5 percent of Network Marketers are senior citizens, and about 8 percent have physical disabilities; 13 percent are African-American; 5 percent are Hispanic, and 1 percent are Asian.
• The top five reasons that people join network marketing companies:

1. I like and believe in the product (90 percent).
2. I like being my own boss (73 percent).
3. I like working at home (64 percent).
4. The harder I work, the more I make (54 percent).
5. I enjoy selling (49 percent).

Sources for the above statistics: the Direct Selling Association

www.FreeMLMsuccessReport.com

About the Author

Jane has an extensive background in the home-based business industry as well as public marketing. She is most well known for her no-nonsense approach to marketing and teaching style.

MLM Advisers
440.942.8166
9am – 7pm EST
www.FreeMLMsuccessReport.com

Most MLM distributors don’t claim as many tax-deductible business expenses as they should or could. I see this all the time, and there is only one thing that keeps them from claiming their maximum business expenses: laziness.

I know, the IRS is Big Brother and everyone hates to deal with them. But in recent years the IRS has actually changed a lot of the tax regulations so that it is much easier for the small business owner to get more tax breaks than ever. The major problem is that you have to document every expense you want to claim, and that’s where most MLM business builders fall flat on their face.

Mileage Deductions – What the IRS Wants in 90 Day Your Records

Documentation is tedious, boring, and definitely not a favorite activity of any small business owner. The good news is that when it comes to your mileage deductions for your MLM business, you only have to keep a mileage log for 90 days. That’s it.

Just pick a period of 90 consecutive days during the year that is “typical” of your business driving habits. Then keep a mileage log. On your mileage log, you need to track the following information:

- date

- business for which the miles were driven (if you have multiple businesses)

- destination

- primary purpose of the trip

- beginning odometer reading

- ending odometer reading

- business miles driven

- personal miles driven

That doesn’t sound too difficult, right? The good news is that if you ever get audited, the IRS will be happy with your 90 day record as long as you have precise and consistent. The IRS is understaffed and overworked, and if they see a precise 90-day mileage log, they won’t spend much time questioning it. The log shows you have a working knowledge of the tax law and that you have made an excellent effort to document your expenses.

Stephanie Valentine has been a successful network marketer for over a decade. She does her MLM business online and helps others do the same. For tips, tricks, rants, and raves about online MLM and small business, visit http://www.gomlmonline.com/blog and http://www.gosmallbizblog.com